On a positive view to the HST answer. There are some safe assumptions that thinking people can count on in the fallout and the aftermath of the HST referendum.
From the campaign’s spending balance and fairness we can count on the B.C. government’s weaning its dependency on federal HST revenues.
This forecast is reinforced by the many economists who have endorsed HST as being good for business. There is even one economist who is specific about this benefit, explaining how the same federal GST trust reporting system with HST, will aid many if not most firms in going underground.
With the near five per cent reduced shopping dollar, people will learn to keep all sales transactions in cash, off the record. As more firms catch on, shifting growing portions of their trade under the HST radar, to have less tax remitted.
Already B.C. is looking to drop the costly pension schemes at BC Ferries. With any luck the government MLAs will also follow with a pay and pension cut. Dwindling HST revenues will force that cut. Less revenues, means less will be wasted on police or home owner grants. Small government is what it’s about.
Another boon of a reduced economy, with much of it underground, is that under reporting firms will advertise less. Put up an advert, you get an audit. That means no or less junk mail even on the Internet. A further plus is that less newspaper space will be wasted on ads.